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Tis’ the Season for Tax Fraud

It’s tax time. As you prepare your taxes or eagerly await any refunds, it’s also time to be aware of tax scams. These scams include phishing emails, texts or phone calls that may warn of a delay with your return, promise a bigger refund or offer you a “helpful downloadable document.” These scams are designed to steal your refund, bank account information or identity by compelling you to provide your private information to the scammer.

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The IRS estimates that it paid $5.2 billion in fraudulent refunds as a result of identity theft last year. This year, in light of recent data breaches, individuals are urged to be especially careful. New scams offer credit monitoring services due to a breach or claim to be from popular tax software providers. The IRS has provided a list of The Dirty Dozen Tax Scams for 2015‡ to help keep us up to date on the latest scams.

In addition, be particularly aware of common tax season phishing emails like these:

You’re owed a refund and need to forward your bank accountinformation for the refund deposit. The IRS does not initiate taxpayer communications through email or social media to request personal or financial information. If you receive an unsolicited email claiming to be from the IRS, send it to phishing@irs.gov.

Exciting offers or refunds for participating in an “IRS Survey.” This fake survey is actually used to acquire private and confidential information that is used to steal your identity.

Threats of fines or jail time for not making an immediate payment, or responding to the email. If you receive an intimidating email like this and even believe you might owe on taxes, contact your local IRS office‡ and report the threatening email.

Documents or toolsfor tax preparation (e.g. “new changes in the tax law,” a tax calculator, etc.). Those “helpful” documents mentioned earlier may, in fact, be malicious files intended to infect your computer. Remember not all unsolicited email is legitimate. If you need current tax information, go to the IRS‡ website or consult with a tax professional.

Scams don’t stop with phishing emails. Here are some helpful tips if you get calls or texts from someone pretending to be from the IRS:

If you know you owe taxes or think you might owe, call the IRS at 800-829-1040.

If you know you don’t owe taxes or have no reason to believe that you do, report the incident to the Treasury Inspector General for Tax Administration (TIGTA) at 1.800.366.4484 or at gov‡.

If phone scammers target you, also contact the Federal Trade Commission. Use their FTC Complaint Assistant‡ to report the scam, and include “IRS Telephone Scam” to the comments of your complaint.

When you click links marked with the “‡” symbol, you will leave UMB’s website and go to websites that are not controlled by or affiliated with UMB. We have provided these links for your convenience. However, we do not endorse or guarantee any products or services you may view on other sites. Other websites may not follow the same privacy policies and security procedures that UMB does, so please review their policies and procedures carefully.

Ms. Flores serves as senior vice president and Chief Information Security Officer, providing oversight of UMB’s information security and privacy programs. She joined UMB in 2010 and more than 15 years of experience in information technology and information security. She attended Kansas State University with a focus on management information systems and is a Certified Information Security Manager (CISM), Certified Information Privacy Professional (CIPP/US) and Certified Information Systems Auditor (CISA).

Learn how to prevent identity theft on Data Privacy Day

A whopping 9 out of 10 adults feel they have lost control over how personal information is collected and used by companies.* With tools at your fingertips allowing you to instantly share and receive online, your private information flows through the internet often without you giving it a second thought. Instead of sending you off with no electronics to rough it in the mountains just so you can protect your privacy, these stats should inspire you to expand your identity theft know-how and step up your privacy game.

I’d like to invite you to join UMB in participating in Data Privacy Day 2015. Be one of the 6 in 10 Americans who are ready to do more to protect their personal information online.* Here are a few ways you can reduce your digital footprint, protect your privacy and prevent identity theft:

Think before you give out your Social Security number, first pet or mother’s maiden name. Does the business or website really need it? Could you use another piece of information?

Read the Privacy Policy. You may be surprised where your favorite online retailer or social media site shares your information. Here is UMB’s Privacy Statement.

Know how to update your privacy settings. Use these simple instructions‡ on how to update privacy settings on Facebook, Pandora, email, internet browsers, mobile devices and more.

Check your credit reports. Every 12 months, you can get a free copy of your three reports at AnnualCreditReport.com‡.

Share with care. Consider the future and not just the moment with anything you post or share online. Once the information is in cyberspace it could be seen, stolen and used.

Celebrated on January 28, Data Privacy Day is an international effort centered on bringing attention to the importance of privacy, safeguarding data and enabling trust. Find out more about Data Privacy Day from the National Cyber Security Alliance‡.

When you click links marked with the “‡” symbol, you will leave UMB’s website and go to websites that are not controlled by or affiliated with UMB. We have provided these links for your convenience. However, we do not endorse or guarantee any products or services you may view on other sites. Other websites may not follow the same privacy policies and security procedures that UMB does, so please review their policies and procedures carefully.

Ms. Flores serves as senior vice president and Chief Information Security Officer, providing oversight of UMB’s information security and privacy programs. She joined UMB in 2010 and more than 15 years of experience in information technology and information security. She attended Kansas State University with a focus on management information systems and is a Certified Information Security Manager (CISM), Certified Information Privacy Professional (CIPP/US) and Certified Information Systems Auditor (CISA).

Debunking credit score myths

In an earlier blog post, we explained why credit scores are important and how to improve yours. For many people, it can seem as if their score was pulled blindly from a hat. So let’s take a look and debunk a few myths.

Credit Score: understanding the number

Cholesterol, blood pressure, glucose, credit score…all numbers that mean nothing unless someone explains what is good and what is scary. Just like a doctor breaks down why your cholesterol level should be below 200, we’re here to explain what an ideal credit score could be. And you don’t even have to cut cheese out of your diet.

Your credit score (the most popular being the FICO® Score named after the organization that created it — the Fair Isaac Corporation‡) can range from 300 to 850 because it’s an adjusted scale. (You get 300 points just for having a credit history…so most adults have a higher score than 300 just by being “on the grid.”) In case you’re afraid to get the pronunciation wrong, FICO is pronounced “f-eye-ko,” like “psycho.”

Why does it matter? If you’re ever going to purchase a house or car or apply for a job, lenders and potential employers will be checking your score to assess your reliability and financial history.

While there are some schools of thought that advise consumers not to obsess over credit scores, the most popular being financial author and radio host Dave Ramsey‡, the FICO Score is a factor in 90 percent of lending decisions in the United States. And many in those anti-credit score camps still encourage you to be aware of your credit reports to check for errors and work on problem areas.

Most important step: check your score and your reports! Even if you’re worried because of past mistakes with late payments or credit card debt, it’s better to know where you stand and start taking action. No ostrich-like behavior!

Good news—unless you’re within the 7 percent of the nation with a score between 350 and 549 (and if you are, stop reading this post and call a credit counselor‡), there is no need to stress. At a score of 550 or more, you can sometimes qualify for a loan. Your motivation for raising it as high as possible will be to get the best interest rates.

Most creditors consider a score above 700 to be acceptable to give a consumer the best rates. If your score is below 700, here are some tips that can help you bring it up. You may be surprised how quickly you can make a change (1-3 years instead of the 7-10 years it takes to start fresh after declaring bankruptcy).

How to raise your score:

1) Understand how the score is decided

In order of greatest to least weight:

Payment history – Did you pay all your bills on time? This includes student loans, car payments, credit card bill, etc.

Amount owed – for example, you still owe $10,000 before you can pay off your car, $15,000 in student loans and $500 on one of your credit cards.

Credit history length – something positive about getting older! The longer you have a credit history, the higher your score rises.

New credit – did you recently open a slew of store credit cards in order to get a discount on a shopping spree? You may be paying for it in the form of a lower credit score.

2) Stay on top of your billsThe best way to improve on your credit score is to pay your bills on time. Have a steady income and live within your means so your bills don’t pile up until you’re completely buried in credit card and loan debt.

3) Ask about your custom credit scoreLenders might also look at your custom credit score in addition to your traditional credit score. A lender will use your custom credit score to get a closer look at the risk factors that are related to what you are trying to fund with the line of credit.

4) Discuss internal credit scoringNot every creditor is required to report your credit. Some major lenders use their own internal credit scoring systems to help them make a decision. Lenders use these internal scores to predict future behavior of their customers. When you answer questions on the loan application form, the responses will go in to creating a custom score for you.

5) One size doesn’t fit allWhat makes you appealing to one lender will not make you appealing to all. If your credit has been damaged, be sure that any new information is reported to credit agencies.

6) Pay the minimumIf you can’t pay the entire balance of a credit payment, at least pay the minimum due. Paying the minimum will keep your credit score from dropping even lower than it would if you don’t pay the bill at all.

This video from the Federal Trade Commission’s website does a great job at explaining why you need to check your report and how to do it.

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When you click links marked with the “‡” symbol, you will leave UMB’s website and go to websites that are not controlled by or affiliated with UMB. We have provided these links for your convenience. However, we do not endorse or guarantee any products or services you may view on other sites. Other websites may not follow the same privacy policies and security procedures that UMB does, so please review their policies and procedures carefully.

Simplifying your credit

When was the last time you downloaded your credit score? If you can’t remember or you have never checked it, you should consider taking a look at it soon. But you’re not alone. Two thirds of the population‡ have not downloaded their credit report in the past year, despite the fact that the average American owes $118,000 in debt‡. This includes mortgage, student loans, credit card debt, etc.

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Why do you need to know your credit score? High debt combined with little to no information about your credit score could put you in a risky financial situation. If you have so much debt that you can’t keep up with it and your regular monthly bills, you might end up paying a bill late or forget to pay it at all. This will lead to a lower credit score. Then when you go to apply for a home or car loan, you could be either denied or receive a higher than normal interest rate based on your lowered score.

Unfortunately, this has become a very common scenario. Many people are living month-to-month and often carry over their credit card debt each month just like their regular bills. One third of working adults‡ don’t pay bills on time in part due to the number of accounts they have. Many have trouble keeping up with monthly expenses, requiring them to dip into savings to cover regular expenses.

Did you know that there are ways to reduce your loan interest rates‡ and monthly payments? You can also reduce the number of payments you owe and even earn money with rewards points from certain credit cards.

To simplify your credit, consider the following options:

Use the bill pay option with your bank

This saves time and you can go to one place to manage all of your bills and schedule them to pay once per month.

Consolidate your debt

Consolidating your debt allows you to have one payment for all your debt and you can usually obtain a lower interest rate. This can allow you to pay your debt in less time for less money.

Reduce the number of credit cards you use

This is another way to help you keep track of your spending and bills. Consider using a credit card that allows you to earn rewards. When you use the card you can earn points toward purchases, helping you save money.

Take advantage of low interest rates

If you refinance your current mortgage to the low rates available now, you can save on your monthly payment. This is also true of auto loan rates.

If you feel overwhelmed by debt and monthly bills, take advantage of these ways to simplify your credit to help you work on becoming debt-free. Even if you don’t have much personal debt, it’s still a good idea to consider these tips to organize your finances, save money, and monitor your credit.

When you click links marked with the “‡” symbol, you will leave UMB’s website and go to websites that are not controlled by or affiliated with UMB. We have provided these links for your convenience. However, we do not endorse or guarantee any products or services you may view on other sites. Other websites may not follow the same privacy policies and security procedures that UMB does, so please review their policies and procedures carefully.

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